MCF Energy provides a further update on its Austrian operations, specifically regarding the final steps in the well permitting and planned timing of drilling at the large Welchau anticline, which remains anticipated in Q4 2023.

Highlights:

• A drilling permit has been received for the Welchau-1 well from the Mining Authority on behalf of the ministry of finance of the Republic of Austria (Bundesministerium für Finanzen) (BMF) as announced on the 23rd of August 2023.
• The operator expects to receive its final permit which is an environmental clearance from the Department of Nature Protection of the State Government of Upper Austria on or before the 30th of October, 2023. The environmental clearance is the last regulatory requirement to commence operations on the Welchau drilling project.
• Upon receipt of the environmental clearance the operator will commence drill site construction and plans to commence Welchau drilling operations in Q4.
• The Welchau geologic structure is mapped as covering over 100 square km in size and could contain significant reserves of gas and condensate.
• The Welchau gas prospect has exceptional gas resource potential, located in the heart of Europe at a relatively shallow drill depth and approximately 18 km to gas pipelines.
• Welchau is targeting the same reservoirs as the nearby Molln-1 well which tested gas in 1989.
• The operator has advised MCF Energy that due to delays in approvals for permitting the well for drilling, they have not met an investment obligation agreed by the parties to commence drilling of the Welchau 1 well on or before the 30th of September 2023. MCF has agreed to extend the commencement date for drilling to on or before calendar year end 2023, in good faith.

Ian Tchacos, executive for the operator, recently stated;
"The Board of ADX looks forward to receiving the environmental clearance for the drilling of Welchau and commencing planned operations as soon as possible. The Welchau exploration project is an exceptional domestic energy supply and economic opportunity for the State of Austria. ADX and our partner MCF are committed to responsible gas exploration.

James Hill, CEO and Director of MCF Energy, stated;
"We are pleased to see progress and support the operators plans to drill the Welchau well both cost effectively and as soon as practically possible. Our goal is to ensure the MCF shareholders receive the best value through timely, safe and efficient operations."

Welchau Prospect

• Located in the foothills of the Austrian Alps; analogous to large anticline structures discovered in Kurdistan and the Italian Apennines
• Drilling anticipated before September 2023; MCF Energy will earn a 20% interest for estimated exploration drill costs of EUR 1.91M
• Up-dip from 1989 gas discovery (Molln-1 well) which intersected a greater than 400m gas column; tested condensate rich, pipeline quality gas
• Short tie-in distance to the national gas pipeline network of approximately 18 km

KeyFacts Energy: MCF Energy Austria country profile